COVID-19: SEC issues additional guiding measures to AGMs

The Securities and Exchange Commission (SEC) has issued additional guidance to operators and quoted companies and stakeholders in the capital market.

The circular is in reaction to the outbreak of the coronavirus pandemic (COVID-19) globally, which has led to social distancing, lockdown, and travel restrictions.

These guidelines were disclosed in a circular issued by SEC to market operators and stakeholders.

Some of the additional measures by the apex capital market regulator include;

All public companies are required to continue to make material disclosures to investors on the impact of COVID-19 pandemic on their business operations.

They should also disclose the trend and outlook for the company, and updates on the implementation of business continuity plans.

These disclosures should be published on their websites and other relevant media.

All public companies who plan to conduct their Annual General Meetings (AGMs) are required to ensure that the conduct of the meetings complies with the provisions of the Companies and Allied Matters Act, the Investments and Securities Act, the SEC Rules and Regulations, relevant government and health circulars and guidelines issued in this regard.

Debt issuers are also expected to continue to engage Trustees and ensure that relevant disclosures are provided. Trustees are required to provide updates to the commission accordingly.

All CMOs are to continue with the monitoring of the real and potential risks that COVID-19 may have on their business operations and the discharge of services to investors and clients.

In compliance with the Federal government’s directive on the restriction of movement in Lagos, Ogun, and Abuja, the commission has activated its business continuity process.

Consequently, the staff of the commission is working remotely. All its electronic channels will remain open to provide the necessary support to capital market stakeholders.